TEHRAN – Iran's Renewable Energy and Energy Efficiency Organization (SATBA) has invited investors to participate in the construction of renewable energy power plants as part of short- and medium-term plans to address the country’s electricity imbalance.

To facilitate investments and resolve challenges facing renewable energy developers, SATBA has implemented measures under the revised Regulations to Remove Barriers to Renewable Energy Production, approved in December 2024.

According to SATBA's first public notice, financing for renewable projects can be secured through existing credit lines or loans supported by the National Development Fund. The fund has expressed full readiness to provide financial backing for renewable energy power plants.

SATBA has requested interested investors to submit relevant documentation for evaluation and qualification. The organization emphasized that it will expedite necessary reviews and final negotiations for contracts. Where needed, SATBA will issue preliminary approvals or referral letters for qualified applicants to access financing from banks.

Iran faces persistent electricity shortages exacerbated by increased consumption during the cold season, primarily driven by a rise in natural gas demand for heating. This creates fuel supply constraints for power plants, which often rely on gas for electricity generation. In response, plants are sometimes forced to use alternative fuels like diesel, which further complicates supply logistics and raises environmental concerns.

Additionally, worn-out infrastructure and a growing demand for power—spurred by population growth and industrial needs—contribute to the strain. Despite adding approximately 3,000 megawatts annually to the grid, aging networks and reduced water levels behind hydroelectric dams offset these efforts.

To mitigate the issue, Iran’s Energy Ministry has emphasized timely maintenance of power plants and encouraged public participation in energy-saving initiatives. Incentives for low-consumption users and penalties for excessive usage are among the measures being implemented.

In early November, Ali Shabnavard, the director general of SATBA’s Office for Supervision of Construction and Production of Power Plants said the capacity of renewable power plants in the country is going to increase by 500 megawatts (MW) by the end of the current Iranian calendar year (March 20, 2025).

He put the current nominal capacity of the country’s renewables at 1,371 MW, adding that just last week 53 MW was added to the capacity of the country’s renewable power plants.

EF/MA